ETF Spotlight: May 2012

Each month, we highlight an ETF flying under the radar of most investors that offers exposure to a unique asset class or investment strategy. This month, we take a closer look at a one-of-a-kind high yield bond ETF that can serve to beef up your portfolio’s current return without taking on excessive risk. The Van Eck Market Vectors Fallen Angel ETF (ANGL) is an appealing instrument that allows for investors to tap into a lucrative corner of the high yield fixed income market.

Following the latest FOMC announcement on April 25th, investors were once again reassured that the Fed has no plans to raise interest rates until late 2014 at the earliest. As such, the historically low interest rate environment will likely continue to favor dividend-paying securities. Investors looking to enhance their current income have more than a handful of ETFs available at their fingertips; high yield bond funds in particular have seen a tremendous increase in popularity as this asset class offers a lucrative dividend distribution without excessive risk. Thanks to the evolution of the ETF industry, ANGL makes it easy for investors to tap into this asset class while even further minimizing the potential risks associated with “junk bonds”.

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